Which of the following statements is FALSE? O When combining forecasts using the OLS method, it is possible for some weights to be negative. O When combining forecasts, equal weights are assigned to the forecasts from different models when the forecast error variance of these models are equal to each other, and the correlation among the models is equal to one. O When combining forecasts, the combined forecast error variance will be at most as large as the forecast error variance of the most accurate of the forecasts that are being combined. O None of the presented possible answers are correct. O When combining forecasts, inversely proportional to forecast error variance weights are assigned to the forecasts from different models when the correlation among the models is equal to zero.

MATLAB: An Introduction with Applications
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Which of the following statements is FALSE?
O When combining forecasts using the OLS method, it is possible for some weights to be negative.
O When combining forecasts, equal weights are assigned to the forecasts from different models when the forecast error variance of these models are equal to each other, and the correlation
among the models is equal to one.
O When combining forecasts, the combined forecast error variance will be at most as large as the forecast error variance of the most accurate of the forecasts that are being combined.
O None of the presented possible answers are correct.
O When combining forecasts, inversely proportional to forecast error variance weights are assigned to the forecasts from different models when the correlation among the models is equal to
zero.
Transcribed Image Text:Which of the following statements is FALSE? O When combining forecasts using the OLS method, it is possible for some weights to be negative. O When combining forecasts, equal weights are assigned to the forecasts from different models when the forecast error variance of these models are equal to each other, and the correlation among the models is equal to one. O When combining forecasts, the combined forecast error variance will be at most as large as the forecast error variance of the most accurate of the forecasts that are being combined. O None of the presented possible answers are correct. O When combining forecasts, inversely proportional to forecast error variance weights are assigned to the forecasts from different models when the correlation among the models is equal to zero.
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